Report: White House Considering Large Mortgage Refinancing Initiative

The Obama administration is contemplating announcing a new plan to aid the struggling housing market next week and it could make its debut September 7 during the President’s anticipated speech on job creation. 

According to Reuters, sources familiar with the administration’s plan said it would offer relief to the housing market, help reduce foreclosures and it would include measures aimed at helping Americans refinance their mortgages. 

This measure would allow borrowers to refinance loans that are backed by Fannie Mae and Freddie Mac or the Federal Housing Administration. The initiative is expected to offer borrowers the opportunity to refinance at current low interest rates, freeing up money consumers can then dump into the market. 

There are a number of gaps in the administration’s plan and while it remains under pressure to reveal more specifics, sources indicate that the White House officials remain wary that any positive changes made could result in equally destructive consequences. 

The new housing plan could compliment the Home Affordable Refinance Program that got its start in the spring of 2009. At the time, the program was estimated to help 4 to 5 million home owners avoid foreclosure but fell short of that estimation only allowing just over 800,000 refinance their mortgages.